Monthly Sector Report: February 2020

The first sector analysis report, based on the three FTX indices (ALT, MID and SHIT) Before we delve into the details, we would like to show and analyze some general key figures. Please also keep in mind that these performance figures subject to the USD, while the performances and comparisons in our rotation report are subject to bitcoin. Nevertheless, there is a correlation between our analysis of the rotation report and the analysis of the index sector. Whenever we see rotations of bitcoin in altcoins, there is more volatility within the individual coins, as well as within their respective sectors. The overall performance of the three indices (equally weighted) for the month of January was +47%, compared to +32% against bitcoin. There is no doubt that the market for crypto-systems has made a very positive start to the new year overall. But let’s take a look at  the FTX indices. The picture below shows the overall performance, broken down into our own sector labels: At first sight, the statistics are rather varied, with one sector (interoperability) clearly above the average and three sectors below average sectors (payment, file storage and exchange). The remaining sectors are +/-10% around the index performance. Let us now take a look at the individual sectors. SoV (“Store of Value”) One coin made the difference – BSV (Bitcoin Cash Satoshi’s vision). With a colossal increase of 140%, it is the clear out-performer in this sector. The rally was driven by the announcement of Craig Wright and a possible listing of BSV on a major Asian stock exchange. Privacy The private sector was one of the winning sectors in January. The geopolitical situation at the beginning of the year (Iran) led to a massive rotation. Coins, such as XTZ and ZEC, achieved over 100%. One of the main investors in the XTZ project is Roger Keith Ver: an early promoter of bitcoin. Besides him, there are many US organizations that have been recognized as investors. The entire organization is spread across the globe. The ZEC is represented by many individual investors: including Barry Silbert: investor in ETC and the main founder of Grayscale Investments. Grayscale Investments is a company that manages and invests in investment funds in crypto-currencies. The assets under management are well over $2 billion. Platform Here we have seen an overall neutral performance compared to other sectors. The three best performing coins were AION and ELF (both shit index) and ETC (mid index). AION is a relatively new coin that was introduced in April 2018. The project is broadly financed by investors from around the world. ELF’s organisation is based in Singapore and approximately 63% of the initial stock is owned by the founders and the project. Ethereum Classic (ETC) is an old coin with an interesting history over the last five years. The introduction of Ethereum in 2015 and the DAO Hard Fork in 2016 led to ETC. 84% of ETC is in the hands of investors – mainly Barry Silbert – while the organisation is based in Hong Kong and New York. The last hard fork “Agharta” in January 2020 and the forthcoming halving in March 2020 have led to an outperformance both in general and compared to the industry constituents. Payment We have decided to integrate DASH into the payment sector. This is because over 80% of transactions are processed outside their “shielded” functionality. Dash was the saviour of the payments sector. It still has a negative performance against the index, but without the +119% of DASH, it would have been much worse. I believe that the performance of DASH is related to the outperformance of the privacy coins as a whole (see above: privacy sector). Others The DGD has helped to push this mixed sector into positive territory. Performance is most likely to be determined by a vote by the governors to dissolve or return ETH Zurich’s cash holdings to the DGD co-owners. Further details can be found here. IoT (Internet of Things) The performance of the IoT sector compared to the index has declined slightly. The coin with the greatest performance was IOTA with a dollar performance of 80%. IOTA is operated by individuals and the IOTA Foundation. Consultants and investors are largely represented. The coin was launched in 2015 and raised a total capital of approximately $434,000. Over 90% is owned by investors. There has been a lot of positive news so far, for example on January 16, 2020, when a new report from the Fundstrat described the possibility that IOTA could become the global industry standard and grow to $700 billion by 2035. However, in a recent negative news story about the IOTA project, one of the founders of IOTA said that he was threatening to take legal action because of a lawsuit for 25 million tokens. The current circulation is 2.779 billion tokens. Interoperability The favourite among the top 100 coins for January was ICX. With a performance of +369% the coin showed the definition of a parabolic movement. Some good news in December 2019 combined with the headline of the Chainlink cooperation in early January set this coin on fire. The previous favourite, ATOM, could not repeat its performance tempo from the last quarter of 2019. In fact, the coin has actually underperformed the most in this sector, with only an increase of 2%. File storage Not much happened here. The underperformance over the overall index is fairly evenly distributed. Exchange LEO is the spoilsport here. There are only three coins that show a negative performance against the index and LEO is one of them – a minus of 2%. My guess is that it reflects the steady loss of market share of Bitfinex over the last few months compared to Binance and some other Asian exchanges. This report – “Index Sector Analysis” – is our latest addition to our research reporting department. It will be published once a month and will provide insights into the coins of the three FTX indices. Copyright © 2019 | Crypto Broker AG | All rights reserved. This publication and its contents, including all names, logos, designs and trademarks and all associated intellectual property and other rights are the property of Crypto Broker AG or third parties. They may not be reproduced or reused without their prior consent. Disclaimer All information in this publication is for general information purposes only. The information provided in this publication does not constitute investment advice and is not intended as such. This publication does not constitute, and is not intended as, an offer or recommendation or solicitation of an investment in any financial instrument including crypto currencies and the like. This publication is not intended for advertising purposes, but serves only as general information. The content contained in the publication represents the personal opinion of the respective authors and is not suitable or intended as a basis for decision-making. All descriptions, examples and calculations in this publication are for illustrative purposes only. Although every care has been taken in the preparation of this publication to ensure that the information is accurate and not misleading at the time of publication, Crypto Broker AG makes no representations or warranties, express or implied, with respect to the information contained herein, its marketability or fitness for a particular purpose, or as to its accuracy, correctness, quality, completeness or timeliness. Crypto Broker AG excludes all liability and responsibility for the use of the information contained in the publication, including by third parties, in connection with trading or other activities, and also for any errors or omissions contained in this publication. Risk Note Investments and investments, especially in crypto-currencies, are generally associated with risk. The total loss of the invested capital cannot be excluded. Crypto-currencies are very volatile and can therefore be subject to extreme exchange rate fluctuations within a short period of time. Any use of the information contained in this publication is exclusively and solely at the user’s own risk. A user should always be aware of the associated risks before making any investment and investment decisions and should seek appropriate advice if necessary. * Originally published in German at CVJ.ch

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